Basic Fundamentals lending Interest Rates:
To understand how banks declare their interest rates, we need to know about the basic of lending cost, what is the current cost of funds. Normally lending cost as per market is approx 9% per annum and if we add some fix cost of lending then it will go up to 11% for non banking financial companies. But banks has large benefit of in house customers having huge current account base. The average minimum account balance is greater than Rs. 10,000 and it can go up to 10 lacs for some unique account. If we talk about average bank balance of current account base where bank do not need to give a single rupee against the minimum average balance maintenance. On the basis of this knowledge, we can say, bank has their own fund for lending without paying interest rates. So the average costs of interest rates are 10%, where there is negligible expense on funds distribution against the mortgage loan & Home Loan.
Comparison between Fixed Rate & Reducing Rate:
For general awareness, there are two types of interest rates available in market from financial industries.
- Reducing interest rate
- Fixed interest rates
PSU banks, private banks, co operative banks are lending reducing interest rates. Apart from these lenders, non banking finance companies like some micro finance companies are also offering reducing interest rates. So if you want to get Property Loan or another housing loan, always prefer reducing interest rates. Actually interest amount is charged on fixed principle loan amount till the outstanding reaches to zero. On the other hand if we get a loan on reducing balance than the interest to be charged will be on remaining balance principle amount rather than whole principle outstanding amount. So whenever we inquire about interest rates always ask for reducing interest rate.
Property Mortgage Rate depends on current banks or finance company base rate and their lending rates. Mortgage Loan interest rates are available from 11.5% to 18.5% reducing basis. Loan against property is the easiest way to get instant case Loan Against Property.
Equitable Mortgage Registration
Good news for all borrowers, planning to borrow a loan against your property anywhere in India as mortgage from any of bank or any other financial institution. From 1st April’13 onward it is mandatory for all borrowers to intimate the loan transaction detail to the concern registrar. Simply say this is completely something new and for the same reason I am excited to share my experience with you all.
I am using my personal example to explain easily to all viewers. Some time ago I have taken a new housing loan from well known private bank and after some time it has done a part disbursement. I got a call from bank and the person updated me that along with the bank guy I have to get some agreement papers submitted to joint sub-registrar’s office. He said, it is mandatory and it has to be done within 30 days of loan agreement done or stamp duty paid by borrower.
No need to panic Just wait a while…
Here are some important points waiting for you and I am sure it will be very helpful! You can call your advocate or any registered consultant to help you in this agreement or directly go to your local Haveli office in Pune city. I would like to let yo know that there are only three Haveli offices for joint sub-registrar where you can do your intimation of registered agreement in Pune. You can do it directly without taking any help from advocate. You just need to go at Haveli No 23 near GPO and it is opposite to BJ Medical College Girls Hostel, Pune.
The credit officer of the Loan Provider banks will give you the set of agreement documents attested by him with photographs and he will tell you to visit at joint sub-registrar office at Haveli No. 23. As the credit manager was a private bank , he will help you every time. Those people have taken Mortgage loans or housing loan from public sector banks like SBI or BOI have to do it by themselves. Please check the below given list of required documents.
- Complete filled intimation form with franked for Rs.100 and the same needs to be submitted of mortgagor duly signed by bank authorized signatory. Generally your bank can franks if not than you need to do the same from any of another banks like Axis bank, SBI, Corporation bank etc.
- Point no. 18 on the said agreement notice of form to be enclosed with duly signed and executed (franked) with copy of loan Agreement, both side accepted loan sanction letter and property Index-II copy of property mortgaged duly signed by bank official.
- Need to do self-attested identity proof, address proof (PAN Card) Copy of the designated credit officer from the bank along with company stamp.
- Need to do self-attest KYC documents (PAN Card) Copy of all the loan applicants.
So this is the complete information about Equitable Mortgage Registration for home loan/ Mortgage Loan in Pune city..
Mortgage Loan without paying EMI!
Mortgage Loan without paying EMI is the most shocking news for all. Control on default is small and rural cities in India are the biggest challenge for all banks and other financial institutions in India. RBI stands a clear instruction to all PSU banks and private banks to do light underwriting at the time of processing of any education loans application in these rural areas. The largest bank of India SBI is agreed with the RBI’s policy. Actually the motive is behind light underwriting is to serve most important financial program to all people which is very important for growing our next generation and progress of our nation.
Banks should do instant process on education loans and other agree base loan everywhere. Also the main responsibility is all borrowers should repay their loan in timely manner. Property loan is another concern in all rural places and township where the clear title is not available, property search report is also not in proper manners kind of more hurdles are there so bank a not comfortable to lend their money in to open market, so availing mortgage loan in these cities is very risky. Mr. Gaurav Sharma owner of “Maa Traders” is very renowned distributor of Vodafone ESSAR Ltd for District Bhind in Madhya Pradesh provides us the complete information about market reports.
Before you believe on this just read it very carefully and you would laugh if you come to know that there is a place in India where many people are taking loan like monthly income and they want to use the funds in to their daily life style even they do not pay a single installment of their loans, collection agency do not have sufficient manpower thus the loan borrowers are enjoying the loan as their income!
It is a common thing in some places in India where the default rate is so high and bank don’t want to take more risk in those particular areas, so most of bankers are not entertaining to new borrower application for processing new loan facility. General information of finance is not available on public domain. People are not aware about the definition default and even them just taking this very casually. Mortgage Loan without paying EMI is a biggest hurdle in the banking growth. Know more about recent changes in Loan Against Property programs.
Also know about different Loans at Get Loans Provider.
Now avail Mortgage Loan from Micro finance Companies. As we are aware about our financial market and it make in line as it starts from RBI to PSU Bank, Private Bank, Co operative bank, NBFC and other micro finance companies in India. In our life sometime we are in to urgent requirement of cash funds and at that time we try everywhere and want to get funds from anywhere. Even we are ready to borrow money against security collateral it may be our fixed asset like unmovable property like your home or commercial property.
If your property has all legal papers and have complete legal document and other permission to construction and other aspects as well as your income support ability than only you are proper eligible for getting financing from any of reputed banks and financial institutions in India. Otherwise you have to wait for any traditional money lenders. Also whether they offer loan to you or not it is completely their choice.
Microfinance Company: A finance company which has got all the approvals from RBI to run his business for rural market to cater the untouched segment of emerging India. Microfinance Company has complete infrastructure like other NBFC. Microfinance companies policy are slight flexible than any of bank and other finance company, just they do not have their own funds, they raise funds from local or foreign investors and these investors comes as equity partner. Interest rate is the challenging part of the business because they are lending funds at 18% to 26%.
The interest rate is high but they have sufficient customer base. They lend their fund against property, and even they are not doing hard credit. They do not lend high ticket size loan as mortgage maximum amount of funding is average of Rs. 25 Lacs in urban and not more than 15 lacs in rural areas. Now lots of companies are doing well in mortgage for example some of Microfinance Company in India like Vistaar Finance, Subham Housing, and Ujjivan Housing etc.
Mortgage Loan from Microfinance Companies is costly sometimes but the loan is for those customers who are not eligible from banks or reputed finance companies. It is good to get loan from anywhere instead of any private money lender because after all your valuable property involves in the transaction and it always must be in safe hand.
Best Loan EMI Calculator
Repaying your loan takes a long time, but if you have a plan in mind, and you know when your bills are going to be paid off, it’s going to make it a lot easier for you to get your EMI burden out of the way. When I was in debt back in the day, I wanted a plan. If you just keep throwing money at a bill, and you don’t know when it’s going to be paid off, you won’t have a plan in mind, and it’s really going to discourage you. In order to get a plan on the road, I wanted to show you some of the best loan EMI calculator in the market that can show you how much you’re going to pay to reach your timed goals.
This is the best way from this you will not need to go to the banks for checking their interest rates and per lac EMI or the current outstanding letter for the running loans, you can save your lots of time through using this calculator, it has another features of amortization schedule brake up facility which help all the customers to know about their future installment along with bifurcation of interest and principle portion on the loans. Check Personal Loan EMI Calculator and calculate your monthly personal loan EMI from multiple banks.
This is designed for all kinds of loans seekers for mortgage loan calculation, housing loan interest calculator. It is user friendly and anyone can really use it. Input the loan balance, the interest rate, and more to get a nice payment schedule. This is a perfect calculator, because you’re able to “add extra payments of Loan amount” because in India people belong to middle class family and we all want to close debt early, when it comes to knocking down your debts.
The Best Loan EMI calculator will show you your monthly payments, as well as your interest payments. It will also show you all of the different plans that you can use easily and instantly compare. Here another great, simple tool that you can use. Input all of your data, and get a full amortization table. It gives you a great idea on what you should have to pay back over the time of the loan to reach your goals.
You’ll want to write out your game plan, and know when your EMI amounts are going to lesser and it is going to be paid off. As long as you have a goal, you’re going to find that it’s going to be a lot easier to focus on your debts.
Collection of Loans
The lenders are not as heartless as many of us may think. They are operating a business and this requires they make a profit. Every person is not able to pay timely EMI of their any of running loans like housing loan, Mortgage Loan, Personal Loan, Business Loans or any of credit card bill hurts the bottom line. Most lenders are so familiar with people who do not pay on their credit card bill that they know instantly when they start seeing late pays that the inevitable is about to happen. That is why many lenders start to act as soon as possible. Many find that if they start doing collection calls and notices that often people will pay off the EMIs timely in order to get them clear from their case. The lenders are fully aware of how the failing economy is causing normally good clients to be unable to pay their bills. This is starting a rash of uncomfortable lenders who fear that soon their business might go downsizing. There are several banks and other financial institute those are not funding to defaulters in India.
Collection of Loans: Many Bankers in India discovered that it has become necessary to early close their most prominent clients and turn down others who might be at risk. The economy has become such a problem that banks are closing and lending institutions are merging with larger ones in order to be alive. This is a very scary time for many lending institutions and their investors. We need to realize that money is not readily available as it used to be. We need to acknowledge that we are having financial problems because of the slack in the economy and so are the lenders. Maximum collection calls are made for Personal Loan and credit cards repayment from banks.
The banks are working on unsteady ground at the present time not too excuse there rudeness at times in order to make collections but it is partially the reason why they are doing more in house calls. Usually lenders hire professional collectors to go after a person who has stopped making their payments in order to get their money. Today lenders are starting to do their own initial calls of collections in order to save on the cost of collection fees. This could be an advantage for some of us if we are wise and use this to our advantage. Since the lender is trying to collect from you it means that the expense of collecting is not as much so you might be able to make arrangements with your lender to get the credit card bill paid by getting a special deal. So collection of Loans is become easier at this time.
Mortgage Loan in India
When you plan on buying a home you will need a mortgage loan in India. You want to make sure that your mortgage meets the requirements comfortable for you when you are taking out the loan in the future. A mortgage that is set up to increase interest over the years is not a good loan. In most cases people find themselves in a bankruptcy situation with a newly mortgage account. There are other things that you need to look at when you are applying for a mortgage that is why it is very important to find the right financier. There are many ways to find the maximum valuation against your property.
You are looking for the right mortgage provider for financing that you can maintain down through the years and perhaps someday you might want to borrow against your home for important things such as money for you children’s education. The Mortgage financiers obviously are not going to look out for your best interest as they are working for the lending institution who expects them to make the best possible deal for the institution. You need to watch out for any lending company who practices unfair practices or fraudulent activities when it comes to making loans for home mortgages. There are so many financiers in Indian market that are funding very well and offering lots of financial offers at any points just need to check properly with online comparing. click here and find the best financial services providers for Mortgage Loan in India.
There are Indian Laws that protect the consumers from such financiers but obviously many times these types of mortgage loan providers walk the streets without being caught. Many times they are not caught because this type of loan is over an extended period of time and the borrower is not aware of what is happening until years later. The best thing a consumer can do is to select from three to five lending companies and check them out as thoroughly as possible before making your selection of your lender for your home mortgage through DealsofLoan. Do not be fooled by the big brands. Remember the finance company might have a seemingly good reputation but the loan officer may not be honest. If you feel at anytime that during your loan things are not going right then you should request another loan officer to look at your loan. This is a life time loan in most cases so be careful and use caution when you are about to find the right lender for your home.
Mortgage Loan Prepayment
Mortgage Loan prepayment is always the best way to save lots of interest amounts. There are three types of repayments option usually used by banks and other financial companies in India, EMI base loan repays by ECS, SI & PDC systems. ECS mode is preferred by public and private sector banks in India. The fewer the bills, the better. Standing Instruction (SI) is used by the banks for those customers having internal salary account in the same bank. Although, there is usually one bill that will stick with us for years – mortgage. Our mortgage payments are what keep us strapped for cash, working more hours, and saving even more money. There is a debate as to whether you should save money or pay off your mortgage and can be looked at by both sides as positive. Although, let’s take a look at what the benefits are of having no mortgage payment. Early repayment of loans is always a better option for all the customers, check loan against property providers bank.
Benefits Paying Off Your Mortgage Loan Amount Early:
Less Stress & More Saving – Tension free life always gives stress less life. First of all customers, you’ll have a lot less stress in your life. Knowing that you’ve worked hard to pay off the house you’re living in is a great feeling. This is probably the biggest bill we’ll ever run into. If you have any new business idea that will be a great opportunity to start new business by availing new Mortgage Loan at DealsofLoan.
Freedom and Happy Life – Not only will you have less stress but now you have more freedom. You’re not strapped for cash because of your mortgage and now you can probably cut back on a few hours without having to worry so much about your future life and get the instant mortgage finance in India.
More Opportunities for Getting New Loans – Not only you have more money but you have so many more opportunities. You can save that money and put it in a money market, FD, retirement fund, stocks, bonds, mutual funds, pay off your other debt, or to spend. It’s your money now, what are you going to do with it?
Early repayment for Safety – After prepayment of mortgage loan, now you are also safe. You have a place to come home to as long as you pay your taxes. This is something that will always be yours, and you can use as an investment. Secure, better financially, and will end up paying a lot less in the long run. You will also have so many opportunities for the future and your money!
Mortgage Loan Defaults
The sub prime mortgage industry has probably contributed the most to the pain we all are feeling now. By providing loans to they have caused the entire economy to crash. Those borrowers who got mortgages despite their bad credit were lured by lenders into APR’s that they can afford when the loan begins but then face foreclosure within a few years. It should not be a surprise that when the consumer with bad credit defaults on payment their bad credit becomes even worse. Not only are they now face with a dismal financial situation, they also have to deal with debt collectors harassing them. This downward spiral leads to depression, divorce, and a feeling that there is no way out.
Indian Leading Banks like SBI,PNB, BOI, ICICI, SBI Mortgage Loan and other some big banks are still far batter from the slow down and funding consistently and very aggressively. SBI is providing secured and unsecured loans on a very large scale. Bank of India and corporation banks are providing large amount of project funding for SME class and Indian business growth is positive. HDFC bank and ICICI bank are the two largest private sector banks in India that are offering multiple secured and unsecured loans for all.
Mortgage Loan Default:
Basic default came in the field by large scale companies and medium scale companies and they are solely responsible of this situation is that if you can’t afford credit because of bad credit you have to pay more to get the credit you want. Those with good credit pay less for it which on one hand they deserve but on the other hand the poor are penalized for being poor which leads to default.
Mortgage Loan and Home Loans customers may be very low chance to become defaults in their loans. The reason was the lack of knowledge of the right low and the way of repayments with the banks contributed to the drop in home prices and cost everyone money. Because of the mortgage industry’s greed many consumers were led to believe that they could afford what they couldn’t which has led too many who have lost everything they have, including a home for their entire families. Their sights were set on the profit they would make by charging 35% interest rates to those desperate for credit.
The damage has been done and will probably get worse and it come default from different types of loan like Home Loan, Personal Loan, Credit Cars and others Mortgage Loan & Default. The only positive consequence of this disaster is that now it is very difficult to credit, which makes it nearly impossible for those with bad credit to get it. This is the way it should be. Here are the facts which made loans high risk on the upwards sides. Indian financial market is showing very positive sign and the market growth will be stable in the next 5 to 10 years in terms of banking and financial growth along with the SME segments positive growth.
Mortgage Loan For Bad Credit Score
By now everyone know that the economy is near to collapse. As per market survey report, most of banks and lending institutions are responsible for the mess. It was created by greedy lenders preying on those with poor credit scores. In the late nineties and early 2000, loan became available to just about anyone with a social security number, and some cases even to those who don’t. Mortgage Loan and unsecured housing loans were instantly available and approved in just simple process without checking proper repayment history and other parameters and it closed easily cached to people with poor credit score or existing defaulters. The downside of this easy credit is that common sense evaporated when lenders started giving loans to those with bad credit. Unfortunately, those with credit problems had to pay much more for the credit team to be able to access the loans. No one in the credit industry was concerned with the fact that easy credit prevents the poor from ever achieving a better way of life. As result when the news was leaked that slowdown is on the way and everything going to dead and economy about to fail and no one save it, kind of news made the economy defaulter.
Mortgage loan Providers Company came in to trouble and they were not able to survive in market. They closed their services in across USA. Credit card companies preyed on the lower class and those with credit problems by giving cards to these people. In India banks funds above 700 CIBIL score for all loans like secured mortgage loan funding as well as unsecured funding along with taken co borrowers.
At the same time in India, all the banks and financial institutions were doing very hard credit for mortgage loan, home loan and personal loan even in terms of credit cards. Banks were really funding very tightly and this is the biggest reason we could save our economy. RBI played the lead role in saving Indian economy from the largest worldwide slow down . Indian Mortgage loan NPA book are not more than 5% and same time less than 5% of bucket 7 & 8 defaulters pools. It is a situation under control for Indian banks and NBFCs who are funding secured and unsecured loan for helping people.
Mortgage loan for bad credit score are available for salaried and self employed customers , Loan Against property in Pune, Loan Against Property and Mortgage Loan. Check your mortgage loan eligibility and compare the best Loans.